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Brand loyalty is important because consumers associate the qualities and properties of liking a brand, which attribution has been shown to be associated with satisfaction.
It can be a source of power for companies and businesses.
Brand loyalty can exist for many reasons. It may come from spending more money on buying products or services, positive emotional associations with your company's values, the quality level of a product or service being above average, and perceived as different in comparison to other brands available in the market.
In this blog post, I will be outlining why brand loyalty is important in 5 easily digestible reasons:-
- Increased profits
- Brand recognition
- Customer willingness to pay more
- Customer retention
- Personalized feedback to improve
Why brand loyalty is important?
1. Increased profits
By offering customers the benefits that suit their needs you are more likely to increase your sales, which means that your business is more likely to make higher profits. Higher profits usually occur when a business has fewer overheads and if it is able to avoid unnecessary costs.
For example, if a customer buys your product once and falls in love with it, they may buy that product again. This means that you don't necessarily have to spend money on marketing or advertising campaigns since they will provide good results if the customers already know about your brand and products.
2. Brand recognition
Customers who are satisfied with your product or service will likely recommend it to friends and family members. There are many ways in which consumers can share their experiences with your brand, either through word-of-mouth, online forums/discussions with other potential customers, or by writing a review on the product or service on different websites.
Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. (Source)
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3. Customer willingness to pay more
Some customers may be willing to pay a premium in order to continue receiving the benefits they receive by being loyal to a brand.
4. Customer retention
The likelihood of customers returning to buy more products or services is higher when they are loyal and committed to your brand. The probability of selling to an existing customer is 60-70%. (Source)
5. Personalized feedback to improve
Customers who feel attached, or identified with your brand may be prepared to offer you valuable suggestions on how to improve the quality of goods/services provided, resulting in an increase in sales and profits.
What is brand loyalty?
Brand loyalty is the relationship that consumers have with the brand.
How to create brand loyalty?
- Involve the customer in product development
- Encourage word-of-mouth by providing incentives for customers to share their experiences with your brand, products, or services
- Provide discounts and freebies to committed customers
- Ask for feedback from customers to improve your brand, products, and services
- Be aware of what is going on in the market
- Be competitive when pricing your products or services.
Which companies have amazing brand loyalty
- Burger King
The 5 reasons outlined in the blog post why brand loyalty is important are just a few of many. The power of brand loyalty is invaluable and contributes to a company's success in ways such as increased sales, profit margins, word-of-mouth advertising, and positive reviews.
I hope you find this post informative and I have provided links below to continue your journey in learning more about why brand loyalty is important.